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Four Countries’ Meeting: Is The Crisis Over On The Pig Market? – Danes, Dutch, Belgians and Germans See a Light at the End of the Tunnel

Tue, 23 Jun 2009 15:58:00 +0100

The Nederlandse Vakbond Varkenshouders (NVV), Danske Svineproducenter (LaDS), Vereniging Varkenshouders (VEVA) and ISN Interessengemeinschaft der Schweinehalter Deutschlands (ISN) discuss about the current situation on the pig market as well as about the respective political framework

Declining stocks lead to market relief – Consolidation in northwest Europe – Crisis on Danish land market – Export demand from Eastern Europe leads to stabilising pig and piglet markets – Export promotion and foreign marketing: the key to success – Wild boar fever: the sword of Damocles – Trouble is caused by EU legislation as to animal- and environment protection

On Tuesday and Wednesday last week, 19 representatives of the pig keepers’ lobby groups from Denmark, the Netherlands, Belgium and Germany met in the rural district of Vechta for a two-day conference.

“It seems like we almost may have overcome the crisis on the northwest European pig market,” stated ISN chairman, Heinrich Dierkes, thus welcoming the attendees to this year’s first four countries’ meeting. Now, after a two-year crisis on the pig market, the light could almost be seen at the end of the tunnel, he said. The stocks having declined above average in Eastern and Southern Europe, demand there for live piglets and pigs mature for slaughter were lively enough now to relieve the market to a noticeable extent.

For that reason, the piglet and pigs-mature-for-slaughter markets were intensely analysed and discussed about on the basis of various investigations. The latest EU prognoses bode quite well for the second half-year. So, for instance, an analysis assuming a pessimistic setting was made in the context of this four countries’ meeting and with regard to November 2009. From this, a pigs-mature-for-slaughter price of 1.56 euros per kg slaughter weight arose as well as a price of 47.64 euros per piglet for German sales. This was a result suitable enough to raise hopes. Exceeding the pig price of 1.60 euros per kg slaughter weight and of 50 euros per piglet seemed quite realistic for an “optimistic setting”. Thus, the long-lasting trend might be broken, giving leeway to the market.

Wyno Zwanenburg, the Dutch pig keepers’ chairman, shares the view that the four participating countries might well be said to be among those who benefit from the past structural changes. Although the Netherlands finally achieved the so-called “AK-10 status” (saying that the country is free from the Aujeszky’s disease), which allows the Dutch to deliver piglets into Germany without having to fulfil any veterinary conditions beforehand, the German piglet market has not been affected in a harmful way. After Spain became ever less interesting over the past years as a country of piglet imports and regardless of the financial crisis, increasing numbers of Dutch piglets are being exported towards East European countries such as Poland, Romania or Hungary.

Torben Poulsen, LaDS chairman, informed the attendees about the fact that the financial crisis almost brought down the Danish land market. This still caused problems for the Danish pig keepers whose farms are externally financed to a major part. Contrary to procedures in Germany, short-term variable credits are normally chosen for financing livestock housing and land purchasing. This went along with extensive restructuring measures carried out within the Danish Crown slaughter group; so the Danish pig keepers’ expansion plans were currently deferred.

Marianne Vandenberghe of the Belgian VEVA pig keepers’ organisation queried the recent methods of pricing on the pig market. The market was being manipulated and the structural changes took place currently at the small farms’ expenses above all. Therefore, VEVA chairman Gert Wallays suggested to critically question the pricing structures applied in the countries attending the meeting and to develop a new scheme through which the free market and the actual production cost would be balanced with each other. Something like a pig market arrangement or contingents were yet refused during the discussion. The argument was brought forward that such kind of arrangement was good only for conserving non-competitive circumstances. The free market alone, however, was suitable to create ideal structures.

Dr. Albert Hortmann-Scholten of the “Vereinigung der Erzeugergemeinschaften für Vieh und Fleisch” (VEZG) producers’ association expects “intense discussions to be held in summer 2010 about the respective masks to be applied in Germany”. At the Kulmbach institute for meat safety and quality, the basic principles were presently being checked and revised for the FOM (fat-o-meter) and autoFOM (fully automatic ultrasonic carcass grading) evaluation formulas which are applied for the grading of pigs mature for slaughter. It was on the horizon already, he said, that this might lead to a basic re-evaluation of the counting of lean-meat share and parts’ weights.

August Rietford, ISN board member, reported on the state of affairs concerning the wild boar fever and the effects it may have in North Rhine-Westphalia and Rhineland-Palatinate. He said everything possible should be done to avoid endangerment to the export business. Rietford pointed to the “ISN 10 point plan” related to combating the wild boar fever. All efforts concerning exports could be undone at one go if just one single case of swine fever transmission from wild boar to domestic pigs came about. Rietford even spoke of the “sword of Damocles hanging over the northwest European pig keeping industry” which might also hit the neighbouring countries. This was a statement which the worried Danish, Dutch and Belgian representatives also followed.

ISN manager Detlef Breuer brought up the issue of the currently worked-on ammonia guide which, the way it is designed at present, were tantamount to a moratorium on new investment. Germany carried the whole matter to excess, discriminating the pig keepers by once again ignoring cattle breeding. But the Dutch pig keepers are also fighting this battle; they are facing problems which are similar to their German colleagues’ ones. The new EU ammonia guide will already have to be realised in the Netherlands in 2010. The possibility could not be ruled out that even there an unexpected short-term change in structures occurred in pig keeping. Until 2013, a European interim solution will be valid with regard to the group penning of sows. Now, numerous small and medium-sized farms were overstrained by the enormous investment needs. The past two years’ crisis on the pigs-mature-for-slaughter market did its bit to deteriorate the whole situation. Therefore, there was need that the EU postponed the time-limit fixed for the realisation of guidelines. The Danes are forced to decrease their ammonia deposition by 30 percent this year already.

Due to the judgement delivered by the Federal Constitutional Court related to the sales promotion fund, meaning the OFF for the CMA and ZMP organisations, much room was also granted for export promotion. Export organisations such as VLAM, the Belgian Meat Office in Belgium and Danish in Denmark were presented. In the Netherland, pig keepers pay 0.29 euros per pig mature for slaughter to have exports promoted for foreign fairs, for example. There was general accordance about the fact that the appropriate foreign marketing was indispensable for strongly export-oriented countries.

The representatives of all participating countries were critical in their estimation of GLOBALGAP’s efforts to have national quality-management systems such as IKB Nederland or QS (Germany) replaced: GLOBALGAP is a private-sector organisation setting global standards for the certification of agricultural products. According to the attendees to the four countries’ meeting, this caused the regional identity of products to fall by the wayside. Pork became substitutable at will (even by products from Brazil), and food retailing were not included, contrary to the national quality management systems. This way, GLOBALGAP did not go far enough because food retailing as a critical issue remained unconsidered. This could not be in the consumers’ interest.

With its 12 000 members, the ISN represents about 70 percent of all German pig producers. The LaDS represents about 1 600 pig keepers, matching almost two thirds of all Danish pig producers. Counting around 3 000 members, the NVV supports the interests of about 60 percent of all Dutch pig producers. Having 1 200 members, the VEVA represents around 70 percent of the Belgian pig market. These lobby groups meet twice a year by tradition, in order to arrange things with each other with regard to political framework and matters of the pigs-mature-for-slaughter market. The next meeting was scheduled to be held in Belgium at the end of November 2009.

The following representatives took part in the meeting: Wyno Zwanenburg, Leo Verheijen and Erwin van der Wielen (NVV), Torben Poulsen, Paul B. Christiansen and Hans Aarestrup (LaDS), Marianne Vandenberghe, Geert Wallays, Kristof Verschelde and Ludo Dobbels (VEVA) Dr. Albert Hortmann-Scholten (VEZG) as well as Heinrich Dierkes, Friedrich Hake, Christian Schulze Bremer, August Rietford, Franz Schulze Tenkhoff, Anna-Kathrin Hertrampf, Kerstin Burbank and Detlef Breuer (ISN).

FOUR-COUNTRY MEETING - GERMAN PIGLET MARKET HOTLY FOUGHT OVER - DANES, DUTCH AND BELGIANS FEEL THE LIMITS OF GROWTH

Thu, 04 Dec 2008 08:30:00 +0100

The Nederlandse Vakbond Varkenshouders (NVV), Danske Svineproducenter (LaDS), Vereniging Varkenshouders (VEVA) and the ISN Interessengemeinschaft der Schweinehalter Deutschlands e. V. (ISN) discuss about the current pig market situation and about political framework

Stock decreases haven’t brought about market relief so far - Stagnation occurs in the Netherlands - Denmark overshadowed by financial crisis - Significant structural changes expected in Belgium - Germany hopes for export opportunities - EU animal and environment protection laws on the agenda

(ISN Sondervig / Herning, Denmark) From Sunday to Wednesday this week, thirteen representatives from pig keepers’ lobbies from Denmark, the Netherlands, Belgium and Germany met for a three-day conference at Sondervig and Herning / Denmark.

“We have not yet overcome the crisis on the European pig market”, said Torben Poulsen, the Danske Svineproducenter Chairman’s, to welcome the participants in this year’s second four-country conference. The Danish farmers, mostly obtaining outside finance for running their farms, are the ones to suffer from the current financial crisis. They fear interest rates to be massively increased for short-term credits during the first December week. Unlike in Germany, building stables and purchasing land are financed via short-term variable credits. As a result of higher debt service, ever more pressure is exerted on the Danish piglet producers.

Hans Aarestrup, LaDS Manager, emphasised the significance of the German market with regard to his organisation. In view of a more-than-600-percent self-sufficiency rate related to pork in Denmark, Germany simply was a “must”. The directive on transports basically limited transport times down to eight hours. On top of that, numerous instructions made them “noticeably more expensive” and thus inefficient. Furthermore, Aarestrup illustrated an experiment made in boar breeding, during which a 15-percent chicory share had been fed to the boars over the last three weeks of fattening in order to cover the unwished-for boar smell in the meat.

Wyno Zwanenburg, the Dutch pig keepers’ leader, reported on the prospect that, owing to the latest Dutch ammonia guidelines which have to bindingly be converted by 2010, an unexpected structural change might occur in pig keeping. With regard to group penning of sows, a European interim solution will remain in force until 2013. Many minor and medium-size pig keepers are being overstrained from the financial point of view as a result of the immense investment needs ahead. The crisis in pig keeping had also contributed significantly to the situation over the past 18 months. In many cases, a lack of liquidity, needed for the required investments in pig keeping systems and environment technology, was discovered.

Furthermore, Zwanenburg alluded to the fact that the right to production must be acquired by purchase in the Netherlands. A pig-fattening place, for instance, cost about 180 euros, a sow place cost near to 500 euros. Because of the Dutch pig market’s pricing, growth were just possible via individual performance enhancement such as raising more piglets or improving feed conversion and thus achieving more pigs per place per year.

For that reason, the NVV board member Mark Logtenberg cherishes great hope looking forward to January 2009. That’s when the Netherlands are most likely to be granted the AK-10 status (free from Aujeszky’s disease). By then, an approximate 3 600 Dutch piglet producers instead of 200 so far will be allowed to deliver their piglets to Germany without having to obey obligations asked for from the veterinary-medicinal point of view. The Dutch market expert assumes that the German piglet market will thus be pressurised. Furthermore, he reckons that revenues in the Netherlands will go up by about 4 euros per piglet, whereas Germany would have to face a 2-euros’ lower price level. Both North Rhine-Westphalia and Lower Saxony were important export markets. Spain as a market had become ever less interesting over the past years. Compared with Germany, East-European countries such as Poland, Romania or Hungary were afflicted with higher transport costs which need to be complied with as a result of long-distance transport conditions.

The Belgian pig keepers still find themselves in a difficult situation with regard to pricing and price transparency on the pig market. This came along with a very unsatisfying situation on the feeding-stuff market, said VEVA representative Kristof Verschelde. Group penning, which will be compulsory as from 2013, would lead to a massive structural change, because 50 to 60 percent of all sows in Belgium are being held in crate stands at present. In Belgium, too, plant extension is only possible if manure is being processed by refining phosphate and nitrate to make a useful fertiliser. To acquire the right to production for a fattening place, a singular payment of about 90 to 120 euros had to be paid. Related to manure processing, the Belgian pig keeper would have to calculate about 20 euros per cubic metre.

Increasing worry was voiced by the producers in view of the soy market development. By introducing higher import tariffs and through its restrictive attitude with regard to genetic engineering, the EU Commission caused the feed-costs problem to aggravate and made the European pig keepers face competitive disadvantage, said ISN’s Franz Schulze Tenkhoff. Here, the EU Commission were to put things right as fast as possible in order to restore international competitiveness related to feeding-stuff costs at last. The disastrous discussions about “zero tolerance” would finally have to come to an end, the more so as meat of animals fed genetically modified organisms is imported into the European Union, without further ado, from the USA, Brazil or Argentina.

August Rietfort, ISN board member, appeared confident that the veterinary agreement made between the German Federal Government and Japan, China and South Africa might give the German pig market further boost. ”Russia works”, he said. The agreement with South Korea as the world’s fourth largest pork importer also was on the brink of being completed. “It is true that the worrywarts are often right, but the optimist concludes the bargain”, stated Rietfort. And it should be for just the bargains not to be put at risk, Rietfort said, referring to the “10-items plan” for wild boar abatement. Just one single wild-boar-fever case occurring might be enough to undo all kinds of export efforts at one do. This was a statement which was supported wholeheartedly also by the Danish, Dutch and Belgian participants.

ISN Manager Detlef Breuer complained about the regulating frenzy observed to be increasing in Germany. Meanwhile, Germany unfortunately were kind of “European Champion in putting spokes in the pig keepers’ wheels again and again through national solo runs”. This currently could be seen well enough in the ammonia guideline being worked on, in the instructions given in the Pig Keeping Decree as well as in the “Technical Control Board” regarding animal welfare. “Enough is enough”, Breuer said. The pig keepers had done their job and achieved a 100-percent rate of self-sufficiency. If politics did not want sustainable, regional pig farming in Germany, this should be stipulated clearly and precisely. No-one should dare clandestinely shirk responsibility by establishing flimsy guidelines and decrees. In view of the precarious situation which is now prevailing among the sow keepers, the ISN Manager requested the politicians to clearly avow themselves. All that market imponderability was something the pig keepers could certainly cope with, but as a matter of fact reliable political framework was finally needed for that purpose. Discussing new items each and every week were by no means a good thing to do.

With its 12 000 members, the ISN is representative of approximately 70 percent of all German pig producers. The LaDS, having 1 600 members, represents about two thirds of the Danish pig producers. Counting about 3 000 members, the NVV supports the interests of 60 percent of all Dutch pig producers. About 70 percent of all Belgian pig producers are being represented by VEVA and its 1 200 members. As a matter of tradition, those lobbies meet twice a year to arrange things with each other about political framework and issues concerning the pigs-mature-for-slaughter market. The next conference has been scheduled for mid-June 2009.

For NVV, Wyno Zwanenburg, Leo Verheijen, Mark Logtenberg and Erwin van der Wielen took part in the conference. Torben Poulsen, Carsten Cristiansen, Anders Nörgaard and Hans Aarestrup had come as LaDS representatives. VEVA was represented by Marianne Vandenberghe and Kristof Verschelde. The ISN representatives at the conference were August Rietfort, Franz Schulze Tenkhoff and Detlef Breuer.

The conference was held Sunday and Monday in Söndervig located at the Ringköping Fjord, West Coast of Denmark. On Tuesday, the participants went to visit the Danish Agromek Agricultural Exhibition at Herning. There, the Danes, Dutch, Belgians and Germans together held a joint press conference, where they played the question-and-answer game with more than 25 journalists. The meeting ended on Wednesday, after the H&S Westergard A/S piglet export terminal had been visited at Sunds, about 200 km north of the Danish-German border.

Desperation Spreads Among Danish, Belgian, Dutch And German Pig Keepers: “Rural Living Devastated Through Increasing Feeding-Stuff Prices, The EU’s Restrictive Policy of GMO Admission And Oligopoly In The Slaughter Business!”

Fri, 28 Mar 2008 00:00:00 +0100

Prices of 70 Euros per Piglet and 2 Euros / kg Pig Mature For Slaughter Required

Nederlandse Vakbond Varkenshouders (NVV), Danske Svineproducenter (DSP), Vereniging Verakenshouders (VEVA) and ISN Interessengemeinschaft der Schweinehalter Deutschlands (ISN) discuss about package of measures with regard to crisis management on the European pig market. – No significant changing is expected to occur in the medium term. – Questions regarding animal health and EU legislation about pig keeping were put on the agenda.

(ISN; Hardenberg / NL) – 16 representatives of the pig keepers’ lobbies from Germany, the Netherlands, Denmark and Belgium met in Hardenberg / NL for a two-day top-level talk Tuesday and Wednesday last week. “This is a clear indication” of how serious the situation is on the pig market, says Wyno Zwanenburg, Chairman of the Dutch pig keepers’ organisation.

The four organisations agreed on the fact that the situation on the pigs-mature-for-slaughter market proves to be desolate. In view of increasing corn prices (90 percent increase within a year’s time) and of misuse of power on the part of the major European slaughter companies, pig keepers in North-West Europe meanwhile “have their back to the wall”. This is what is collectively felt within the organisations. Although the producers’ prices had undercut the year-ago prices by 10 percent in Belgium, Denmark, the Netherlands and Germany last year, the consumers really did not stand to benefit from the prices, Zwanenburg stated. He de-scribed this to be a scandalous situation, which shows how unblushingly the major slaughter companies, the processing industry and food retailing abuse their market power at the expense of consumers and farmers. Therefore, the NVV had asked the PVE (Productschap Vee, Vlees en Eieren) at the beginning of March to demand the EU Commission for a pan-European tracing of the disposition of margins within the pork value chain.

In order to meet concerns with regard to the immensely increased feeding-stuff costs or to be able to produce in an at least cost-effective way, a German piglet (28 kg live weight) would need to generate revenues of about EUR 70, said Detlef Breuer. From that, however, the producers still were light-years away: At present, a sow farmer had to cope with a EUR 25 loss per piglet. For those farmers who work on a regular basis, feeding 200 sows, this meant a monthly total loss of about EUR 10 000.

ISN Board Member August Rietfort stated that the German pig feeders needed to realise a price of EUR 2 per kg slaughter weight in order to be put in the position to pay the price men-tioned above to the piglet producers. But up till now, the prices were far away from that (more than 50 cents), and still the farmers could not see the light at the end of the tunnel.

In those countries where the majority of pigs are held, it is anticipated that - contrary to ex-pectations – the stock densities will not be reduced in the medium term, although the market might be relieved that way. Reducing the sow stocks by a maximum 5 percent as a result of breeding process (i. e. more piglets littered per sow and year) would rather be compensated to a large extent, supposed Torben Poulsen, DSP Chairman. Compared with the year before, the EU even anticipated the pig stocks to increase by 0.3 percent within the first six months of 2008.

Industry experts all over Europe expect pork production to be further reduced in the long run as a consequence of prices remaining on too low a level – a development which massively emerges in the Eastern European member countries at present. Apart from supply going back in a barely noticeable way, giving a boost to exports from the EU would be essential for prices to recover fast, maintained VEVA’s Kristof Verschelde. In this connection, however, it was a worry to everyone that the Euro grows ever stronger. Through this, export opportunities were obviously being hampered.

For this reason, the leading European pig-exporting countries’ hopes for a trend reversal to occur on the pig market mainly rested on export. Many a surprise had come from the global market in the past, said Hans Aarestrup. Demand on the domestic- and export markets were rather expected to increase due to the UEFA Cup to be held in Austria and Switzerland in summer, the settlement of the “meat conflict” between Poland and Russia as well as to the Olympic Games to be held in China.

The producers are increasingly worried about what happens in the grain trade and on the soy market. Those products become ever more expensive on the global markets, and apart from that, the EU Commission makes the situation get even worse by increasing import duties and by adopting a restrictive attitude towards genetic engineering. This way, says Franz Schulze Tenkhoff (ISN), the problem of high feed costs is getting ever more severe, leaving the European pig keepers having to cope with competitive disadvantage. In this respect it was an essential thing to do indeed for the EU Commission to put things right as fast as can be in order to re-establish international competitiveness pertaining to feed costs. All those unfortunate discussions about practising “no tolerance at all” needed to be brought to an end soon; the more so with regard to the fact that animals fed on GMO (gene modified organisms) feed were being imported into the EU anyway from the USA, Brazil or Argentina.

On top of that, various questions were discussed about with regard to pig health, such as: castrating piglets without anaesthetising them before; the status of the Aujetzky disease in the Netherlands; respective national situations relating to salmonellae diseases. Taking a look at the AK-10 status striven for in the Netherlands (aiming to have the country free from the Au-jetzky disease), Zwanenburg continued to report that – regardless of all efforts which have been undertaken so far - this might be realised no earlier than at the beginning of 2009. The Dutch act on the assumption that another 650 000 to 700 000 piglets a year might then be exported towards Germany (equatable to a 25 percent increase in the number of Dutch piglets exported towards Germany next year, amounting to a total 3.1 million piglets). Those piglets mostly came from farms where about 200 sows were held; as a result of export restrictions imposed on those farms in consequence of the Dutch AK status, those farms had proven to be too high a bureaucratic and financial restriction. Examination- and administration costs were estimated to amount to about EUR 1.50 to 2.00 per piglet, stated Mark Logtenberg.

It goes without saying that the political framework also was discussed about thoroughly. Here, the focus was put on animal transport regulations, group penning of sows as stipulated by the EU and on the Health Check.

About 70 percent of all German pig producers are being represented by the ISN with its 12 000 members. About 1 600 pig keepers are being represented by the DSP (equatable to two thirds of the Danish pig producers). The NVV numbers about 3 000 members, thus supporting about 60 percent of the Dutch pig producers. About 20 percent of the Belgian pig producers are being represented by VEVA with its 1 200 members. These lobbies usually meet twice a year in order to arrange things with each other with regard to political framework and all kinds of issues about the pigs-mature-for-slaughter market. The next 2008 meeting has al-ready been scheduled for the month of November, in the run-up to the “Agromek” agricultural trade fair to take place in Herning, Denmark.

The NVV participants of the two-day workshop were: Wyno Zwanenburg, Leo Verheijen, Mark Logtenberg, Erwin van de Wielen, Harry Bloemenkamp. Jeroem Verver took part on behalf of the Dutch Rabo-Bank. Torben Poulsen and Hans Aarestrup attended the meeting as representatives of the DSP. Kristof Verschelde, Bart Mouton, Lude van Dobbels and Luc van Puymbroek were the VEVA delegates. Anna-Kathrin Hertrampf, August Rietfort, Franz Schulze Tenkhoff and Detlef Breuer took part on behalf of the ISN.

The meeting was held at the “De Groene Belangenbehartinger” offices (NVV affiliate) in Hardenberg / NL. “De Groene Belangenbehartinger” had moved to those offices in November 2007 only. 18 employees are working in the fields of liquid-manure applications, energy, liq-uid gas, quality assurance (IKB Nederland), legal advice, market reporting as well as data evaluation with regard to the pig keepers’ diverse requirements, such as price comparisons or a salmonellae data bank, which is planned to be expanded with regard to detailed, individual evaluation of single carcasses.

Contact:
Katja Ahnfeldt
ISN Interessengemeinschaft der Schweinehalter Deutschlands e. V.
Kirchplatz 2
D – 49401 Damme
Tel.: + 49 – (0) 54 91 / 96 65 – 11
Fax.: + 49 – (0) 54 91 / 96 65 – 19
E-Mai.: ahnfeldt@schweine.net

Photo (from left to right): Harry Bloemenkamp (NVV), Delef Breuer (ISN), Anna-Kathrin Hertrampf (ISN), Jeroen Verver (Rabo Bank), August Rietfort (ISN), Erwin v/d Wielen (NVV), Kristof Verschelde (VEVA), Leo Verheijen (NVV), Franz Schulz Tenkoff (ISN), Torben Poulsen (DSP), Wyno Zwanenburg (NVV), Hans Aarestrup (DSP), Mark Logtenberg (NVV), Bart Mouton (VEVA)

Dutch, Danish and German pig feeders hold emergency session

Fri, 26 Oct 2007 00:00:00 +0100

At the end of September, Danish, Dutch and German sow feeders’ communities of interest held an emergency session in Germany. One of the major issues discussed about there was the disastrous situation the sow feeders are presently facing. In each of the three countries, the sow feeders have their backs to the wall in view of the lowness of piglet prices and the immense increase of feed costs. Currently, the sow feeders go through a loss amounting to EUR 25 per piglet. Farmers feeding 200 sows on regular basis thus must cope with a monthly total loss of about EUR 10 000. Many sow feeders assumedly won’t be able to keep pace any longer before long. A lot of farmers already have sows slaughtered in order to reduce stock and thus be able to decrease financial losses they would otherwise be sure to suffer on.

Pig feeders in the Netherlands and Denmark in particular have specialised more and more in feeding sows over the past years and in exporting piglets toward Germany. 50 percent of all sows held in Denmark are already kept at farms with more than 500 animals! In Germany, 50 percent of all sows, after all, are found in small farms feeding less than 200 sows. The situation among sow feeders in Germany has meanwhile been tightened drastically as a result of structural differences like these. Subsequent to large quantities of Dutch and Danish piglets having been imported into Germany, considerable price declines were observed to occur on the domestic piglet market. Thus, many farms have been forced into a threatening situation.

Increasing worries are voiced by the producers with regard to what is happening on the soy and crop markets. Apart from globally increasing prices being demanded for these products, the high-feed-costs situation is getting even worse, resulting in competitive disadvantage to be coped with by the European pig feeders, with the EU imposing higher import duties and showing a restrictive attitude toward genetic engineering.

WHO just strains for effect: Pigs are not easily infected with bird flu

Fri, 03 Mar 2006 00:00:00 +0100

“The WHO does radiate a lot of panic if stating that the H5N1 strain of bird flu may be transferred to human beings via pigs”, says the ISN Interessengemeinschaft der Schweinehalter Deutschlands.

As, however, said by the President of the German Robert Koch Institute (supervisory and research establishment reporting to the German Federal Ministry of Health), Mr Reinhard Kurth, pigs obviously are not easily infected with bird flu currently. According to information given by Reuters, Kurth also said that the risk of infection has not increased for human beings in Germany, even though a male cat had died recently after having been infected with H5N1 on the German island of Rügen.

This issue started to be discussed about after the H5N1 infected male cat had been found on the island of Rügen and after WHO spokesperson Mrs Maria Cheng then started to worry about the bird flu virus to become capable of spreading to pigs, where it might finally blend with human flu viruses. In such case, the virus might be retransferred to human beings, and a pandemic possibly would be started. Relating to this, Mrs Cheng referred to European pandemics which had been activated by bird flu viruses in 1957 and 1968.

In the 1950s, cows, pigs and poultry usually were held together with cats and watchdogs. “Mrs Cheng does not seem to be informed about the fact that the conditions under which livestock is held have changed considerably over the past 50 years”, says the ISN.

“Unlike in Asia, pigs are held in modern stables in Germany today in which no other species but pigs are held,” the ISN continues. “On top of that, these stables are completely inaccessible to any kind of poultry whatsoever.” So, the consumers’ health is best protected by this way of keeping pigs. “With pigs being kept the way they are held today, direct infection of pigs with H5N1 is out of the question in Germany”, is what the ISN is convinced of.

In Asia, even the ways of marketing poultry facilitate the bird flu virus to spread. Unlike in Germany, where poultry is sold via butcheries and supermarkets after slaughter, most of the poultry sold in Asia is marketed alive on livestock markets.

Carstensen and Ehlen confirm North German cooperation in agricultural policy

Thu, 19 May 2005 00:00:00 +0100

Law on Livestock and Meat causes a lot of worry – ISN parliamentary chat-night in Berlin on 11 May 2005

ISN Chairman Franz Meyer zu Holte called it to be a kind of “kleptocracy”, this “awesome bureaucracy that will really only end in itself and as a consequence of which dynamic businesses such as pig management are being paralyzed here in Germany”. This was one of the opening remarks Meyer zu Holte made when he declared the ISN parliamentary chat-night open in Berlin on 11 May 2005. More than 100 guests out of politics and industry had come, among which were many members of the Bundestag and the federal state parliaments.

The ISN Chairman demanded that the politicians present turn their backs on such excess of bureaucracy. “We, the pig keepers, want to do our business with sole responsibility. For this, we need to be supported by you”, Meyer zu Holte addressed the Members of Parliament.

Schleswig-Holstein’s newly elected Minister-President, Peter Harry Carstensen, and Lower Saxony’s Minister for Agriculture, Hans-Heinrich Ehlen, once again confirmed that they are willing to work together in agricultural policy all over North Germany.

“Common interest needs common expression”, Carstensen went on. He said that in his capacity as Minister-President he would continue to support the pig keepers’ interests both at the regional state level and at federal level. The word-for-word conversion of the Pig Keeping Decree still is part of his support. Carstensen demanded that “pork needs to continue to be produced in Germany”. Additionally, Minister-President Carstensen is convinced that for creating more extensive leeway for the pig keepers, bureaucracy absolutely needs to be reduced.

Hans-Heinrich Ehlen, Lower Saxony’s Minister for Agriculture, said he were not willing to accept that Germany must pay a fine for not converting the EU Pig Keeping Decree because of the Federal Government’s blocking policy. To his mind, “the Bundesrat’s draft decree implies the best possible compromise”. Taking a look at the still-to-be-done Salmonella Decree, Ehlen demands that “this is required to be included in the existing systems in a proper way”.

Dr. Christel Happach-Kasan (FDP Member of Parliament) passed on best wishes to the pig keepers on behalf of the Bundestag Committee of Consumer Protection, Nutrition and Agriculture. “Agriculture’s standing is high not only in rural areas but also in the Committee’s daily work”, she reported. Many jobs, after all, were found in agriculture in rural areas. So, Happach-Kasan’s message to the young people was: “Working is possible in agriculture, too.”

With regard to the Law on Livestock and Meat, ISN Manager Detlef Breuer voiced his support for a minimum amount of rules to be obeyed by all those involved. “However, such rules need to be anchored in the Law, in order to prevent the pig keepers from being driven to the wall completely by the overpowering slaughter companies”, Breuer demanded.

It is another fact being looked at with great concern by the pig keepers that biogas plants are being supported massively by the government. “In regions with little expanse left, considerable price increases are being caused by those who run such plants. This appears to be a problem particularly here in our regions where the pig keepers won’t be in a position to keep pace with the increasing leasehold rent.”

Photo:
Speakers at the ISN parliamentary chat-night (from left to right): Franz Meyer zu Holte (ISN Chairman), Peter Harry Carstensen (Schleswig-Holstein Minister-President), Dr. Christel Happach-Kasan (on behalf of the Bundestag Committee on Consumer Protection), Hans-Heinrich Ehlen (Lower Saxony Minister for Agriculture), Detlef Breuer (ISN Manager).

Danish, Dutch and German pig keepers demand for national statutory provisions to be harmonized as an EU standard

Mon, 07 Mar 2005 00:00:00 +0100

During this year’s first convention of the Danish, German and Dutch pig keepers’ lobby groups, which was held at the end of February at Federicia / DK, the Dutch pig keepers’ comparison of slaughter companies was of great interest to the participants.

By tradition, the managers and board members of Danske Svineproducenter (DSP), of Nederlandse Vakbond Varkenshouders (NVV) and of the Interessengemeinschaft der Schweinehalter Deutschlands e. V. (ISN) meet every six months. During those meetings, current political framework as is valid for pig keepers as well as various issues regarding the carcass pig market are being agreed upon.
The next convention will be held in Germany in September 2005.

Comparison of slaughter companies
When Hendrix Meat Group was taken over by Vion (formerly Bestmeat) in the Netherlands, the NVV felt to be given grounds for having a detailed analysis being carried out with regard to prices for carcass pigs. It was found that Vion paid the lowest producer prices of all last year, being closely followed by Hendrix. In future, Vion and Hendrix together will be dominating about two thirds of the Dutch carcass pig market. Amazingly, three cents more were paid per kg slaughter weight last year by Denmark’s Tican than were by the monopolist, Danish Crown.
The three lobby groups mentioned above are striving for a joint international comparison of slaughter companies to be made regularly.

In face of the cross-border concentrating of slaughter companies, a comparison is getting ever more important on a pan-European level, as is claimed by the producers. The ISN, too, currently works on a comparison of German slaughter companies, into which more than 100 already out of the whole of 217 German slaughter companies have been included.

Competitive distortion results from various interpretations of EU statutory provisions
The pig keepers worry about the EU statutory provisions to be interpreted variously in the individual member countries. So, for instance, the Danes and the Dutch converted the EU pig keeping guideline into national law. In Germany, however, much higher standards are being planned to be introduced by the legislation, which would result in competitive disadvantage. In Denmark again, one fears that legislative initiative might be put into force by the government through which the Danish pig keepers would be restricted to a considerable extent.

Annulment of feeding ban on animal proteins and fats
With regard to carcass disposal, which has to be paid for to a large extent by the Dutch farmers and even completely by the Danish farmers, the Dutch and the Danes found an interesting alternative in the German way of partly being co-financed by public authorities. Much money must be paid by the pig keepers for the monopoly held by Rendac (Dutch carcass remover) and by DAKA (Danish carcass remover).

Jointly, the three lobby groups demand that the feeding ban on animal proteins and fats be annulled. “For ethical- and cost reasons, it is necessary that products suitable for food production are being returned to the sustainable cycle of ‘animal improvement’, especially as animal fats are part of the feed ration in Denmark anyway”, demand the pig keepers.

Danes and Dutch wish for exporting more piglets into Germany
At present, the Dutch and Danish pig keepers invest more money into piglet production for making more of a profit from Germany’s growing need for piglets. In about four to five years’ time, however, this might result in a considerable excess in piglet production.

Given a 12 000 registered ISN members, about 70 percent of all German pig producers are being represented by the ISN. The DSP holds more than 1 600 registered pig keepers, thus representing about two thirds of the Danish pig production business. About 50 percent of all Dutch pig producers are being represented by the NVV and its more or less 3 000 members.

See photo, from left to right:
Bernhard Bonekamp (ISN), Hans Aerestrup (DSP), Wyno Zwanenburg (NVV), Willie van Gemert (NVV), Hans Joergen Tellerup (DSP), Willem Groot Wassink (NVV), Soeren Schovsbo (DSP), Carsten Christiansen (DSP), August Rierfort (ISN), Detlef Breuer (ISN).
[(Missing: Torben Poulsen, DSP)]

Tönnies catching up with Bestmeat, increasing lead over Westfleisch -- 2004 “top 10” listing of slaughter companies

Mon, 17 Jan 2005 00:00:00 +0100

Cooperating with discount shops helps Tönnies increase turnover. Despite having taken over Barfuss GmbH, Westfleisch still ranks third

A list of the “2004 top 10 slaughter companies” was published by the Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V. (ISN) right at the beginning of the New Year. When summarizing the survey results, Andreas Beckhove, ISN market expert, said that “an enormous rearrangement of market shares was characteristic for the slaughter industry in 2004”.

With regard to the B&C Tönnies slaughter company at Rheda-Wiedenbrück, for instance, an increased number of slaughters could be observed last year. As many as 6.9 million pigs were slaughtered by them in 2004. According to Beckhove, this B&C succeeding to make such giant leap forwards was caused, above all, by the intense cooperation with the leading discount shops and by their entering into the fresh meat business.

The Bestmeat group of companies, however, with their head offices at Best (Netherlands) and Düsseldorf (Germany) was able to just maintain their market share of about 7.5 million carcass pigs at the 2003 level. It is true that this way Bestmeat continues to be top of the list, but the competitor at Rheda-Wiedenbrück was able to considerably diminish the distance. With regard to the stagnating number of pig slaughters it was assumed that integrating the German subsidiaries NFZ (CG Nordfleisch AG) and A. Moksel AG was the responsible factor.

Westfleisch eG at Münster remain number 3 on the “top 10” listing. About 5.5 million pigs were slaughtered by this cooperative. The group’s last year’s growth mainly resulted from merging with Barfuss GmbH at Oer-Erkenschwick.

Meanwhile, more than 60 percent of all pig slaughters in Germany are being carried out by the “top 10” companies.

Beckhove was convinced enough to say that “we are expecting further structural changes in the German slaughter industry in 2005 by which market shares will be rearranged anew”.

One million carcass pigs currently missing in Germany

Tue, 27 Jul 2004 00:00:00 +0100

Livestock counting results ring in changes

As many as about one million less carcass pigs are currently available for slaughter all over Germany than were last year. On the basis of the recently published May 2004 livestock counting results, this was calculated by the Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V. (ISN).

The livestock has decreased by more than 7 percent alone in Lower Saxony and North Rhine-Westphalia, where more than 50 percent of all German pigs are being held. According to the ISN this means that in those two lands alone 460 000 carcass pigs are currently missing to be put on the market.

Given structural deficits, compared to North West Germany, in carcass pigs' marketing in the other lands the decrease in stock has become even clearer. About 9 percent less carcass pigs are held in Baden-Württemberg. The figure amounts to 10 percent less carcass pigs in Saxony-Anhalt and to an even 12 percent decrease in Hesse.

ISN ensures improved market transparency through its new internet comparison of pig prices

Thu, 24 Jun 2004 00:00:00 +0100

"How good do I think is my way of marketing pigs if I compare it with the other pig feeders' marketing methods?" An answer to this question was announced by the ISN to be given to all pig keepers. Because: optimum pig marketing can only be granted if the market is being made transparent.

On top of that, the pig keepers know all too well what problems and challenges may arise from practical marketing: The advantage which results from a high basic price is quickly being made up for again by a low dressing percentage or by severe deductions made due to unfavourable clearing methods. "So, in the end it's the price paid per kilogram slaughter weight -- or even better the price paid per kilogram live weight -- which is the decisive factor", says Mr Andreas Beckhove, ISN market expert.

For this reason, the ISN recently created a new pig price comparison which is valid for ISN members throughout Germany and was now made available for all ISN members, after having gone through successful test runs. By means of this free-of-charge price comparison, all pig feeders are being given the opportunity to directly, and anonymously, compare their current slaughter data with those of other pig feeders.

For every week they supplied pigs and sent the appropriate data to the ISN via internet, all participants in the price comparison will be returned an e-mail giving an evaluation of all data. In this evaluation, the major accounting parameters will be listed for all pigs that were supplied. Furthermore, a comparison of the "top 25 % farms' " data and those of the individual pig keeper's own farm will be shown. At the end of the year, all participants will be receiving an evaluation of all data collected throughout the year. As soon as enough data will be available, individual slaughterhouses will be sent a statement regarding marketing. Beckhove emphasises: "For achieving a convincing data record it is a must to have as many pig feeders participating as possible."

All ISN members will be able to take part in the price comparison. The data will be entered via the safe user surface on the ISN web site (www.schweine.net). A clear form needs to be filled in -- requiring little time only -- under "ISN price comparison", where the participants enter all slaughter data of the currently delivered batch of pigs. "Since an evaluation only makes sense if it is drawn up in an up-to-date way, no more than three weeks at maximum should have gone by after the supply of the fatteners", adds Beckhove.

If any of your questions remained unanswered, please don't hesitate to get in touch with the ISN market expert, Mr Andreas Beckhove, under telephone + 49 - 54 91 - 96 65 - 17.

"Crowded house" - More than 900 pig feeders expected to attend ISN strategic convent at Münster, 16 March 2004

Wed, 03 Mar 2004 00:00:00 +0100

(ISN) - For its strategic convent, which will be held at the conference hall of Halle Münsterland at Münster on 16 March 2004, the Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V. (ISN) could already take down the enrolment of more than 900 pig feeders who wish to attend the meeting. A panel discussion is planned on the occasion of which leading experts from the slaughter industry will discuss about the "Future Prospects of the European Pig Market".

"Future Prospects of the European Pig Market" - ISN strategic convent

Fri, 27 Feb 2004 00:00:00 +0100

On 16 March 2004, the Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V. (ISN) will hold a strategic convent at the conference hall of Halle Münsterland at Münster. Leading experts from the slaughter industry will be there to discuss about the "Future Prospects of the European Pig Market".

A panel discussion is planned to be held, before the background of the serious structural changes occurring in the European slaughter industry and at the pig farms. The carcass pig market has been influenced severely by those changes during the past ten years. Due to the political framework which changes so quickly, all persons involved in the "creating of the increase in the value of pork" are being forced to concern themselves with entrepreneurial action more than ever.
"How is it likely to be going on?" This can be heard everywhere. People are worrying about the farms' future prospects. The ISN strategic convent aims at helping the farmers in their decision-making as regards their own farms' further development. For "the easiest way to predict the future is that the people try and decide on it by themselves."

During the panel discussion, journalist Werner Prill, who is going to be the presenter, will have the experts from the slaughter industry fight a battle of words. They will be asked to state their views about the issue -- and to disclose their plans regarding the future prospects of the European pig market.

And here are the participants in the panel discussion:

Bent Claudi Lassen (vice-president of Danish Crown and president of Danske Slagterier)
Dr. Uwe Tillmann (chairman of Bestmeat Company & Moksel AG)
Clemens Tönnies (managing partner of Tönnies Fleisch)
Dr. Helfried Giesen (managing chairman of Westfleisch eG)
Franz Meyer zu Holte (ISN chairman and piglet producer from Lower Saxony)
August Rietfort (ISN board member and pig feeder from North Rhine-Westphalia)

To order tickets please get in touch with ISN e. V., Kirchplatz 2, D - 49 401 Damme, Germany (or fax to: + 49 - 5491 - 9665 - 19).
Tickets will be free of charge for ISN members; for non-members 10.00 Euros will be charged per person.

German, Danish and Dutch pig keepers agree to work together much closer in future

Fri, 13 Feb 2004 00:00:00 +0100

Close cooperation regarding market and policy matters were agreed upon by ISN, Danske Svineproducenter and Nederlands Vakbond Varkenshouders

(ISN) At the beginning of February, board members and managers of the German Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V. (ISN), of the Danish Danske Svineproducenter (DSP) and of the Dutch Nederlands Vakbond Varkenshouders (NVV) met in Damme, Lower Saxony. Having 12 000 members, the ISN represents about 70 percent of all German pig producers. About two thirds of the Danish pig producers are being represented by the DSP's 1 500 pig keepers. The NVV numbers near to 3 000 members, thus representing about 50 percent of the Dutch pig producers.

During a two-days' conference, these three professional associations, which are the leading ones in their own countries, co-ordinated the individual positions they take regarding current issues of pig husbandry. Furthermore, they agreed to work together much closer in future and to regularly co-ordinate market and policy matters in further discussions.

So, for instance, the pig keepers were in agreement that the regulations on animal transports, which were being discussed presently, were heading for the wrong aim. By what is being applied for as EU guideline, the time allowed for transport is planned to be cut back from 24 to 9 hours, granting for a 12 hours' break afterwards. According to the three professional associations named above, "no such regulation would be of any use to anyone". Restricting the time of transport would make no sense from the economical point of view, they say. Taking into consideration that the EU becomes ever larger, this were quite a counterproductive way of acting. It also were of no use whatsoever to the protection of animals: Stress and strain were above all caused during loading and unloading of the animals, not by transporting them. The only sensible thing to do were to maintain the transport time of 24 hours and to seek for bettering the transport quality at the same time.

In the face of the cross-border concentrating of slaughter enterprises, the pig producers would attach ever more importance to comparing pig prices on a pan-European level. For that reason, the ISN made a comparison of European pig prices. By this comparison, an ever increasing similarity of prices was found for the time from July to December 2003. This way, the EU member countries' borders are getting ever less important.
According to the professional associations, it were of utmost importance to compare payment prices as well as production costs. For that reason, the ISN, the DSP and the NVV agreed to work together with each other even closer in this respect, too, and to achieve better market transparency this way in the individual countries.

ISN opposing private storage of pork

Mon, 15 Dec 2003 00:00:00 +0100

(ISN) - The Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V., Damme (ISN) clearly opposes the stimulation of private storage (PLH) of pork. Franz Schulze Tenkhoff, ISN board member, reported that - on the initiative of the French - representatives from France, Denmark and Holland had met with representatives from the EU Commission last Tuesday. The issue had been discussed about that, due to the low producers' prices, the French again intended to ask the EU Commission to intervene in the pork market in a regulating way. A decision on this matter could be taken in week 51 / 2003 already.

According to Schulze Tenkhoff, violent infringement of foreign supplies of pork to France were the reason for this course of action. As a result, Denmark and Holland had taken legal action against France and had been granted right last weekend. The French Minister of Agriculture, Mr Gaymard, would be meeting EU Commissioner of Agriculture, Mr Fischler, in the near future for declaring that he would do whatever possible to stop any such actions, the ISN board member continued to report. At the same time, Gaymard would ask the EU Commission for help in overcoming this crisis. The Dutch, on the other hand, supported a "restricted" way of private storage. This should be bound to the condition that the pork that were stored would only be sold abroad, Schulze Tenkhoff said. On top of that, the Dutch stood up for the increasing of export restitution for Russia. The Danes, however, had voiced their support for promoting private storage, Schulze Tenkhoff remarked. They feared that, if private storage were introduced, the upswing which were expected for 2004 would be delayed or even ruined. It seems, however, as if they were now following this "shabby compromise".

According to the ISN, a lasting price increase had been avoided through the selling of goods from private storage this summer. So for that reason there were no understanding at all for the position that had been taken up by the Deutsche Bauernverband (DBV; German farmers' association), where people had spoken in favour of private storage. As per Schulze Tenkhoff, "this must have been kind of a quick fix, which no-one had not thought about in advance." The German pig keepers supported a free market which would not allow government regulation. No kind at all of excessive desire for action would be of help; rather would the market itself have to display its power.

ISN: Loss of 37 Euros per fattener - price of 1.50 Euro required for the kg

Wed, 03 Dec 2003 00:00:00 +0100

(ISN) - The Interessengemeinschaft der Schweinehalter Nord-Westdeutschland e. V. (ISN) at Damme is very concerned about the serious drop in prices for pigs for slaughter. Franz Meyer zu Holte, ISN Chairman, said that due to the current price of 1.12 Euro per kg slaughter weight the farmer would only be paid 96 Euros per pig for slaughter.

"Everybody is extremely nervous", continued the ISN Chairman. Given such low prices, the pig feeders even wouldn't be able to pay for piglets and feed: From the returns, 50 Euros had to be paid for feed alone and 49 Euros had to be spent on the piglet. The compound feed industry had announced severe price increases, which would be taking effect by the turn of the year. Another 28 Euros were consumed by energy costs, expenses for the buildings, and others. "This way, the pig keepers on the one hand are not being paid for the work they do, and on the other hand they are losing 37 Euros per fattener at present", said Meyer zu Holte.

Detlef Breuer, ISN Manager, described the situation as "extremely serious": "If he continues to produce at such prices, the farmer who runs 1,000 fattening places might well face an annual loss of more than 90,000 Euros from pig husbandry alone." Since the pig keepers had not been able to achieve a cost-covering margin for two years already, many of them fought for barely escaping with their lives, said the ISN Manager.

In order to still keep the pig farmers in a position to continue pig husbandry, even despite Germany's high legal standards stipulated for the protection of animals, the prices -- in reverse -- per kg slaughter weight would have to be around 1.50 Euro. According to Breuer, it were also necessary to take into consideration that, apart from the directly classifiable production costs, a volume of 0.10 Euro per kg had to be deducted as prepaid costs, including the contribution to the sales fund, losses caused by the payment system and partial losses. Last year, such kind of "hidden costs" had almost doubled.